Diversification of family businesses: An analysis.
Diversified enterprises are a business “affair” generally seen in India, like Enso Group, where families share the reigns of the business with the next generation.
The world, in many ways, is driven by the business sector as a whole, which is responsible for maintaining or growing the economy of nations globally. So many different sectors have emerged, especially in the past few years, and have contributed majorly to their countries in more ways than one. A few that climb the ladder of success are single businesses and brands, while others are massive conglomerates and enterprises that add more revenues and sales to the economy of their origin country. Family businesses have attained a new level of growth over the years, like the much-talked-about Enso Group, a diverse enterprise with several businesses running under its roof.
Founded by ace businessman Vinay Maloo, the group in all these years since its inception in 2005, has come a long way. However, Managing Director Vaibhav Maloo’s efforts have also been gigantic that have helped the group push forward the growth of the whole business world in India and even globally. Enso Group today is raring to emerge as a global force and is known as a young conglomerate, which in a few years, has diversified and how from oil and gas, healthcare, and infrastructure to real estate, mineral mining, and solar energy.
Enso Group is also a family business, where Vinay Maloo, along with his son and MD Vaibhav, has been successfully running the conglomerate. Experts across the business space point out that the demographic reality for almost all business families is that their conglomerate has to grow. Thus they diversify to support the needs and ambitions of a growing family.
Most often, diversification of family businesses happens for two reasons; one is that they want their business to support their growing family up to further generations, and two is when they back the savvy in their family to support them in doing business of their choice, thus turning into a conglomerate. In the former, growing businesses are in service of the goals of the family, and in the latter, it is about diversifying by investing in a particular type of business or asset as compared to investing in the interests of a family. Vinay Maloo and Vaibhav Maloo highlight that success or failure ultimately comes down to how well families orchestrate their financial, social, and human resources.
Enso Group’s diversification is all about getting into sectors that can add more value to that particular sector. They are driven to drive India’s growth story by achieving excellence in every industry they venture into. They also aim to build and sustain global, profitable, diversified, and dynamic growth ventures that can create value for stakeholders and turn them into a world leader.
